Q3 2019 Silicon Valley Market Report - Office
Office activity has continued to remain strong through the close of the 3rd quarter. With significant amounts of leasing taking place, vacancy rates are decreasing, and net absorption remains solidly in the positive. With total vacancy below 9%, sublease space now plays a significant role consisting of more than 30% of the total vacant space. Those spaces include Palo Alto Networks and Citrix, both located in Santa Clara and Cavium, located in North San Jose. Although new development is in the pipeline all over Silicon Valley, many developers are still not interested in building office space on a speculative basis. With that said, investment-grade tenants such as Verizon and Roku at Coleman Highline are pre-leasing large blocks of space well before construction starts.